Town of Hamden Releases Results
of August 2021 Sale and Refinancing of Bonds
Hamden, CT - The Town of Hamden is pleased to report the positive results of last week’s sale of bonds and refinancing of existing debt in the amount of $19.32MM. The sale of new bonds consists of items previously authorized by the Legislative Council but not taken to market for reasons of timing, and the refinancing of eligible existing debt which was approved by the Legislative Council on May 17, 2021.
Highlights of the sale include:
The Town refinanced $15.75MM of bonds that cost 4.08% down to 1.50%. This saved the Town $2.12MM on a present value basis or 13.43% of refunded bonds. The Town will realize $2.145MM of total budgetary savings with upfront savings of $301k, $1.45MM, $413k in FY 2022, 2023, 2024 respectively;
- The Town’s 20-year new money issue cost was 2.38% and was able to generate additional debt service fund deposit of $986k in addition to the project fund deposit through the generation of bond premiums;
- Of the $19.32MM bonds that the Town is selling to investors, the Town received investor orders of $115.35MM, over 5.9x oversubscribed with 18 different investors from across the nation participating on the sale; and
- The oversubscription allowed the Town to lower yields on the financing anywhere between 2 to 7 basis points depending on the maturity. A basis point equals one one-hundredth of one percent.
“Hamden’s recent improvement from a negative outlook to a stable outlook by Standard and Poor, an independent Wall Street credit rating agency, helped us to achieve an additional $1 million in savings with this issuance,” said Mayor Curt Balzano Leng. “Along with proper planning, insurance and marketing by a team of financial professionals, we were able to save a full $2.1 million over the term of the bonds because we had an abundance of prominent investment firms who saw the potential of our community, the qualifications of our leadership team, and wanted to invest in Hamden. This investor confidence clearly demonstrates that we are on the right path with our financial improvements, especially the increase in fund balance and the dramatic improvement of our pension plan.”
“Clearly, proper funding levels we have applied to significant budgetary line items including debt service and pension funding, along with a team that understands municipal finance, set the stage for a bond sale that will save Hamden taxpayers money for the next two decades,” Leng added.
For further information, please contact Finance Director Scott D. Jackson at 203-287-7010 or via email at email@example.com